Why Inheritance Tax Planning Matters

Should I be thinking about Inheritance Tax?

So many things in life are comforting exciting to ponder about; like where would we like to go on holiday next year? This is because life is for living. However, it doesn’t mean we should forget about planning for the ones we love after we’re gone.

Ask yourself this question; if you and your spouse were to pass away tomorrow and everything you own (including your home and assets) was given to your children, would they be faced with an inheritance tax liability and be forced to sell assets to pay Revenue?

If you haven’t thought about inheritance yet, don’t worry! We can help you take action now. There is a solution.

By taking out a Section 72 Inheritance Tax policy, you are making provision for the tax bill that may arise when your children inherit your estate. A Section 72 policy is a Life Insurance policy set up by parents under trust for their children. The proceeds of the policy are exempt from Inheritance Tax because they are used to pay Inheritance Tax. The effect is that you have made provision for some or all of the tax liability.

• The Capital Acquisition Tax rate is currently 33%.
• The annual Gift exemption is currently €3,000 per person p.a. to each beneficiary.

What are the tax exempt thresholds for beneficiaries?

Group A:

Each child is currently entitled to receive up to a maximum of €335,000 in respect of gifts or inheritances from their parents without incurring a tax liability.

Group B:

Where the beneficiary is a lineal ancestor, descendant, brother, sister, or child of brother or sister of the disponer, they may receive up to a current maximum of €32,500 without incurring a tax liability.

Group C:

In all other cases (including common law spouses/co-habitants) the tax free threshold is currently €16,250.

Talk now with our financial planning team

Murray & Spelman Financial Services is here to assist you in all areas of family financial planning, inheritance planning and financial protection; including mortgage protection, income protection.

We will provide impartial, unbiased advice for you and your family. Our qualified teams in Kildare and Galway will research and explain the most suitable options available to you in an easy-to-understand, jargon-free manner.

Murray & Spelman (Financial Services) Ltd help you plan for your future, while you live for today!